A.G. Edwards Continues 'Nest Egg Knowledge' Support of Financial Literacy Programs at Children's Museums
       By: A.G. Edwards
Posted: 2007-04-30 13:11:29
Some good news has recently emerged about parents, children and the topic of financial literacy. According to the April 2007 Nest Egg Knowledge For Kids survey commissioned by A.G. Edwards (NYSE: AGE) and conducted by Harris Interactive(R), 63 percent of parents said they have discussed the concepts of saving and investing with their children. Unfortunately, there are not many action steps following those discussions, as less than half of parents said they helped their child open a savings account (44 percent), and less than one-fifth (18 percent) have required their children to put a portion of their allowance into savings as a means of encouraging their child to build their own nest egg.

In an effort to provide hands-on, interactive learning opportunities for children, A.G. Edwards is continuing its partnership with children's museums nationwide to sponsor financial-literacy programs as part of its Nest Egg Knowledge For Kids initiative.

Since the initiative's inception in 2006, and with its upcoming grant awards for 2007, A.G. Edwards will have provided approximately $750,000 in grants and other support to children's museums throughout the country to help underwrite the development of unique educational programs that teach children the concepts of earning, budgeting and saving money. And this past February, A.G. Edwards launched "Savings Quest," an interactive online game available at mysavingsquest.com, which teaches these same concepts.

"Through our Nest Egg Knowledge initiative, we are embracing our role in helping young people learn the critical steps of earning, budgeting and saving money for their future," said Robert L. Bagby, chairman and chief executive officer of A.G. Edwards. "Our nation has growing concerns about the personal savings habits of its citizens, so we feel it makes sense to support efforts that help children learn these concepts early in life so they are better prepared to deal with financial matters in their adult years."

Survey Shows More Parents Likely To Talk With Their Children About Saving

A.G. Edwards makes its renewed commitment to children's financial literacy at a time when financial education initiatives for youth are still clearly needed. According to the April 2007 Nest Egg Knowledge For Kids Survey, about one-third of parents (34 percent) have not discussed saving or investing with their kids. Most frequently, these parents cite age as a factor: 39 percent consider their children too young to understand.

"What's encouraging is how parents are reprioritizing financial literacy in their child's education," said A. G. Edwards Personal Finance Strategist Sophie Beckmann, CPA, CFP(R). "We'd like to see parents take a more active role in teaching kids about saving and budgeting. The younger children begin to learn about saving and investing, the better off they'll be." According to the survey, some of the top barriers are:

-- 23 percent of parents believe their children are too young to worry about it

-- 17 percent said it hasn't occurred to them to talk with their kids about saving and investing

-- 14 percent admit not knowing very much about it themselves

-- 6 percent are too embarrassed about their own savings and investing habits to discuss it with their children

-- 7 percent responded that there are more important things to educate their child about

There are some common steps parents can take -- but many have yet to take -- to help their children create positive saving and investing habits. According to the survey, four in five parents (80 percent) have taken steps to encourage their child to build their own nest egg, including:

-- 44 percent of parents helped their children open a savings account

-- Just 24 percent required their children to get a job and put a portion of their earnings into savings

-- Only 18 percent initiated a college savings plan

-- Only 18 percent required their children put a portion of their allowance into savings

-- Just 11 percent encouraged their children to read and follow business and financial news

Children's Museum Support Continues

The 2007 Nest Egg Knowledge For Kids grants will be presented at the Association of Children's Museums' InterActivity conference in Chicago, Illinois on May 10, 2007. The museums receiving grants for the 2007-08 school year are:

-- Boston Children's Museum (Boston, Mass.)

-- The Children's Museum of Cleveland (Cleveland, Ohio)

-- Children's Museum of Houston (Houston, Texas)

-- The Children's Museum of Memphis (Memphis, Tenn.)

-- The Children's Museum in Oak Lawn (Chicago, Ill.)

-- Children's Museum of Richmond (Richmond, Va.)

-- Cinergy Children's Museum, Cincinnati Museum Center (Cincinnati, Ohio)

-- Explorium of Lexington (Lexington, Ky.) -- new member

-- Fort Worth Museum of Science and History (Ft. Worth, Texas)

-- Garden State Discovery Museum (Cherry Hill, N.J.)

-- Imagine It! Children's Museum of Atlanta (Atlanta, Ga.)

-- The Iowa Children's Museum (Coralville, Iowa)

-- Kidspace Children's Museum (Los Angeles/Pasadena, Calif.)

-- The Magic House, St. Louis Children's Museum (St. Louis, Mo.)

-- Miami Children's Museum (Miami, Fla.)

-- Port Discovery, the Children's Museum in Baltimore (Baltimore, Md.)

-- Stepping Stones Museum for Children (Norwalk, Conn.)

The participating children's museums open their doors to approximately 5 million visitors each year and offer nearly 750,000 square feet of exhibits and play space that provide an entertaining environment in which to learn. While following general guidelines from A.G. Edwards to create a sound financial education program, each museum tailors its program to meet the needs of its particular community. Many of the programs are modeled after the established and successful "Money Doesn't Grow On Trees" program at The Magic House, St. Louis Children's Museum. The program helps students make connections between everyday living and finances through interactive games and role-playing. Students are given jobs, earn paychecks, make purchasing decisions and learn how to save money for longer-term financial goals.

"The first year of our partnership with these children's museums has been very successful," said Justin Gioia, vice president, director of investor relations and corporate giving for A.G. Edwards. "Between this school year and next, these museums will have served approximately 50,000 children with high-quality financial-literacy programming."

Teachers whose classes have participated in the A.G. Edwards-sponsored financial-literacy programs confirm the quality and value these programs provide. For instance, the Cincinnati Museum Center's "A.G. Edwards Mind Your Money" game is one example that proved to be a successful experience for Cincinnati children, with participating teachers giving the experience an average score of 4.92 out of 5 for educational value. And more than 95 percent of teachers evaluating the Magic House's "Money Doesn't Grow On Trees" program rated it a 5 out of 5 on the relevance of its educational content for state academic standards and school curriculum.

"A.G. Edwards' support for the 'Mind Your Money' game has made a big difference in the lives of children in our community," said Sandy A. Angel, director for foundation relations for the Cincinnati Museum Center. "Children are truly learning sound money management in an entertaining, engaging way that teachers respect and parents appreciate."

Nest Egg Knowledge For Kids Survey Methodology

Harris Interactive(R) fielded the online survey on behalf of A.G. Edwards between April 11 and April 13, 2007, among a nationwide sample of 2,373 U.S. adults 18 years of age or older. The data were weighted to be representative of the total U.S. adult population on the basis of region, age within gender, education, household income, race/ethnicity and propensity to be online. In theory, with a probability sample of this size, one can say with 95 percent certainty that the results for the overall sample of adults have a sampling error of plus or minus 3 percentage points. Sampling error for results based on the sub-samples of parents/legal guardians (n= 1,261) and parents/legal guardians who have not discussed saving/investing with their child/children (n= 415) may be higher and would vary. However, that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

Harris Interactive is responsible for fielding the online survey on behalf of A.G. Edwards. A.G. Edwards is responsible for the compilation of data from other sources and for computing the Nest Egg Score and the results reported.

About Harris Interactive(R)

Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides innovative research, insights and strategic advice to help its clients make more confident decisions, which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world's largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiaries Novatris in France and MediaTransfer AG in Germany, and through a global network of independent market research firms. More information about Harris Interactive may be obtained at http://www.harrisinteractive.com. To become a member of the Harris Poll Online and be invited to participate in online surveys, register at http://www.harrispollonline.com.

About A.G. Edwards & Sons, Inc.

Drawn to the firm's client-first philosophy, individuals and businesses have turned to A.G. Edwards for sound advice and access to a wide array of investment products and services that can help them meet their financial goals and objectives. Founded in 1887, A.G. Edwards and its affiliates employ nearly 7,000 financial consultants in more than 700 offices nationwide and two European locations in London and Geneva. More information can be found on http://agedwards.com.
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